Collateral damage of silver prices continues on sluggish demand
Massive silver sell-off in bullion market (Part 1 of 2)
Silver price volatility
Silver April futures closed at $15.80 per ounce on March 6, 2015. They tested the lows on December 29, 30, and 31, 2014. This was the eighth down day in the last ten trading sessions, and there have been 0.51% more average up days than down days over the last ten days.
Silver declines
On March 6, April silver futures traded in COMEX (the commodities exchange division of the New York Mercantile Exchange) closed near the day’s low. Prices were down by 2.17% compared to the last trading session, and the total volume was at 41,153 contracts at the close of trading. Volume accelerated from the previous day by 18,753 contracts.
Silver prices are trading lower by 67% from the peaks of April 2011. The appreciating dollar, strong US economic growth, and sluggish industrial demand led to the decline in silver prices.
February and early March 2015 saw monthly silver continue its downtrend, led by a strong dollar and improving US economic conditions. A heavy sell-off from precious metals traders and jewelers due to sluggish demand led the massive decline of silver last week in the bullion market. Industry surveys suggest that the pain is not yet over for silver.
The fall of silver impacts key silver ETFs like the iShares Silver Trust (SLV) and the ProShares Ultra Silver ETF (AGQ). It also negatively affects silver stocks like Pan American Silver Corp. (PAAS), Silver Wheaton Corp. (SLW), and Hecla Mining Company (HL).
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